Gap Inc plans to set up 80 per cent of its stores at strip centers, city centers and outlets by 2023. The company aims to double its e-commerce sales to 50 per cent to drive growth and achieve a 10 per cent operating margin. It looks to double Athleta sales to $2 billion and grow Old Navy to $10 billion.

To achieve its targeted 10 per cent consolidated EBIT margin, the company will have to pull several levers. Its Old Navy and Athleta brands would together need to achieve a 15 per cent margin. If these brands each earn 12 per cent, Gap, Banana Republic and the others would need to reach a 6 per cent margin.

So far, Gap has closed some 500 stores. It further plans to close about 225 Gap and Banana Republic stores in 2020. With the pandemic bolstering consumers desertion of work and formal attires, sales of

Banana Republic have declined by 52 per cent in the second quarter. The company is now moving towards selling more comfortable items, which could boost some sales, says Neil Sauders Managing Director, GlobalData Retail.